ZIMBABWE – Innscor Africa Limited, an expansive manufacturing and retail conglomerate in Zimbabwe, has registered a 112% rise in half year revenue in the period ended December 2021 to ZW$53.681 billion (US$148m).
The stellar performance was delivered on the back of strong volume performance, enabled by competitive pricing and supported by ongoing investments into increased capacity and improved production efficiency.
The trading environment during the period under review was characterised by firm consumer demand, supported by the productive 2021 agricultural season, a cyclical rebound of international commodity markets, and the convenience brought to the consumer through the multi-currency system.
Its strong trading- oriented focus, combined with improved capacity utilisation and a diversified product portfolio, delivered strong volume growth across all business units over the comparative period.
To this end, loaf volumes in the bakery division closed 23% ahead of the comparative period, underpinned by firm market demand, which was encouraging.
Beefing up its capacity, Innscor has undertaken development of new state of the art bakery in Bulawayo with a build-out over the next twelve months, coupled with further plant automation initiatives within the Harare operations.
At its subsidiary National Foods, volume performance improved as new categories were introduced into the portfolio, coupled with more efficient operating structures and increased capacity utilisation.
Despite inflationary pressures contributing to slower consumer demand in the latter part of the period, overall volumes closed 15% ahead of the comparative period.
National Food’s flour milling division recorded a 3% volume improvement, stockfeeds division upped volumed by 16% volume, traded goods division recorded volume growth of 71%, snacks division increased volume by 49%, with biscuits and cereals division attaining 19% and 42% rise in volume respectively.
Meanwhile, volume performance within the newly established Down-Packed division was encouraging, with rice and salt sale volumes jumping 53% and 31% respectively.
However, Maize Milling division’s volumes were 7% behind the comparative period as maize meal demand remained subdued.
Shifting focus to another division, Innscor’s Profeeds, the stockfeed category recorded volume growth of 15% ahead of the comparative period, with an encouraging increase of 62% within the relatively new “Aquafeeds” fish feed category.
Under its protein division, comprising of Colcom, Irvine’s and Associated Meat Packers (AMP), all registered improved performance with volume growths of 11%, 37% and 11% respectively.
Meanwhile, the group’s other light manufacturing and services operations i.e., Natpak, Prodairy, Probottlers and Probrands also exhibited a strong performance.
At Natpak, overall packaging volumes improved by 14%, Prodairy recorded a 32% increase, Probottlers delivered a very pleasing result with total volumes closing 25% and at Probrands volumes grew by 20%.